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2 months ago
Tata Electronics’ Semiconductor Plant To Support Indian Startups Build Prototype Chips: Ashwin Vaish
Summary
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Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Tata Electronics’ upcoming Dholera fab will enable Indian semiconductor startups to conduct prototype chip tape-outs domestically at 28–90 nm nodes
India’s semiconductor push is beginning to translate into on-ground progress, with Micron’s $2.75 Bn ATMP facility in Gujarat’s Sanand expected to start commercial production by February
Meanwhile, VC funding in Indian semiconductor startups rose to about $50 Mn in 2025, yet remains modest due to long timelines, capital intensity and limited near-term commercial validation
Adding to the regulatory push to further build the prowess of India’s semiconductor industry, Union minister for electronics and IT Ashwini Vaishnaw announced that Tata Electronics’ upcoming semiconductor fabrication plant in Dholera will aid Indian semiconductor startups to build prototype chips. Once operational, the support from the plant will add on to the assistance already provided via the state-run Semiconductor Laboratory (SCL) in Mohali.
During his interaction with semiconductor chip design companies operating under the Semicon India Programme, the Minister informed that the upcoming facility will be used for chip “tape-outs”, the stage where a chip’s final design is sent to a fabrication unit to produce early samples for testing and validation.
At present, most Indian startups rely on overseas fabs like Taiwan’s TSMC and US-based GlobalFoundries for tape-outs. The export of the fabrication process raises costs, increases turnaround time and limits startups’ ability to improve their designs.
The Dholera plant will support chip designs in the 28-90 nm range. In comparison, SCL Mohali currently operates at the 180 nm node, which restricts startups from working on relatively newer and more commercially relevant designs. Vaishnaw said that together, the two facilities would cover a large share of the chips used in global electronics applications.
The minister was speaking after meeting 24 chip design startups selected under the government’s Design Linked Incentive (DLI) scheme. Of these, 14 startups have raised around INR 430 Cr in venture funding, as per the government.
Currently, SCL Mohali supports tape-outs for startups and academic institutions, mainly through shared wafer runs. However, the facility’s older technology has been a bottleneck. To address this, the government has announced a plan to modernise SCL Mohali over three years with an investment of INR 4,500 Cr.
Under the next phase of the DLI scheme, the government plans to expand support to more fabless semiconductor startups. The focus will be on six chip categories: compute systems, radio frequency, networking, power management, sensors and memory.
Separately, the government reiterated its long-term goal of enabling domestic manufacturing of advanced chips, with a target of reaching 3 nm chip production by 2032.
The news comes at a time when India’s semiconductor push is beginning to move from policy intent to early execution. A key milestone on this front is US-based Micron Technology’s India facility in Gujarat’s Sanand, which is expected to begin commercial semiconductor production by the end of February.
Micron’s project involves a total investment of up to $2.75 Bn under the India Semiconductor Mission (ISM), including fiscal incentives from the Centre and the Gujarat government. Construction began in mid-2023, with around 60% of Phase-1 work completed by late 2024.
Tata Projects is executing the build, and the facility is expected to be handed over to Micron by December 2025, after which the company will share its operational and production timelines.
Despite the growing policy momentum, venture capital participation in India’s semiconductor ecosystem continues to remain cautious. In 2025, Indian semiconductor startups raised roughly $50 Mn, a 79% jump from $28 Mn raised by such startups in 2024.
While this reflects an upward trend in VC interest, funding levels remain modest compared to other deeptech or software segments.
Industry observers attribute this gap to multiple structural factors. Semiconductor manufacturing is capital-intensive and execution-heavy, making it better suited to large, established companies rather than venture-backed startups.
As a result, many of the government’s biggest incentives, including those under ISM and PLI, are flowing towards large electronics and semiconductor players, with startups benefiting only indirectly.
That said, investor interest is slowly shifting towards less capital-intensive segments of the semiconductor stack. Areas such as chip design, RISC-V-based architectures, AI accelerators, edge computing chips and specialised ASICs are increasingly seen as more aligned with venture economics.
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ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
Stay ahead with the latest news, funding, startup financials, & governments policies on the hottest tech industries in the Indian startup ecosystem.
Get featured, partner or work with India's #1 startup media & intelligence platform and explore what else Inc42 has to offer.
D2CX by Inc42 is a 12-week hands-on program to help you level up your D2C game. Learn from India's top 1% D2C founders and experts through actionable insights, proven strategies and tactics on how to 10X your D2C brand.
ManagementX by Inc42 – India’s first Startup Management Program is a 6-month hands-on program that will take you on an intense journey that shatters the outdated “employee mindset” and equips you with the “leader mindset”.
D2CX Foundations by Inc42 is a 6 week hands-on program to help you launch your D2C brand successfully and profitably. Learn from India’s top 1% of D2C founders & experts through actionable insights, proven strategies and tactics on how to launch a successful D2C Brand in 6 weeks.
Tata Electronics’ upcoming Dholera fab will enable Indian semiconductor startups to conduct prototype chip tape-outs domestically at 28–90 nm nodes
India’s semiconductor push is beginning to translate into on-ground progress, with Micron’s $2.75 Bn ATMP facility in Gujarat’s Sanand expected to start commercial production by February
Meanwhile, VC funding in Indian semiconductor startups rose to about $50 Mn in 2025, yet remains modest due to long timelines, capital intensity and limited near-term commercial validation
Adding to the regulatory push to further build the prowess of India’s semiconductor industry, Union minister for electronics and IT Ashwini Vaishnaw announced that Tata Electronics’ upcoming semiconductor fabrication plant in Dholera will aid Indian semiconductor startups to build prototype chips. Once operational, the support from the plant will add on to the assistance already provided via the state-run Semiconductor Laboratory (SCL) in Mohali.
During his interaction with semiconductor chip design companies operating under the Semicon India Programme, the Minister informed that the upcoming facility will be used for chip “tape-outs”, the stage where a chip’s final design is sent to a fabrication unit to produce early samples for testing and validation.
At present, most Indian startups rely on overseas fabs like Taiwan’s TSMC and US-based GlobalFoundries for tape-outs. The export of the fabrication process raises costs, increases turnaround time and limits startups’ ability to improve their designs.
The Dholera plant will support chip designs in the 28-90 nm range. In comparison, SCL Mohali currently operates at the 180 nm node, which restricts startups from working on relatively newer and more commercially relevant designs. Vaishnaw said that together, the two facilities would cover a large share of the chips used in global electronics applications.
The minister was speaking after meeting 24 chip design startups selected under the government’s Design Linked Incentive (DLI) scheme. Of these, 14 startups have raised around INR 430 Cr in venture funding, as per the government.
Currently, SCL Mohali supports tape-outs for startups and academic institutions, mainly through shared wafer runs. However, the facility’s older technology has been a bottleneck. To address this, the government has announced a plan to modernise SCL Mohali over three years with an investment of INR 4,500 Cr.
Under the next phase of the DLI scheme, the government plans to expand support to more fabless semiconductor startups. The focus will be on six chip categories: compute systems, radio frequency, networking, power management, sensors and memory.
Separately, the government reiterated its long-term goal of enabling domestic manufacturing of advanced chips, with a target of reaching 3 nm chip production by 2032.
The news comes at a time when India’s semiconductor push is beginning to move from policy intent to early execution. A key milestone on this front is US-based Micron Technology’s India facility in Gujarat’s Sanand, which is expected to begin commercial semiconductor production by the end of February.
Micron’s project involves a total investment of up to $2.75 Bn under the India Semiconductor Mission (ISM), including fiscal incentives from the Centre and the Gujarat government. Construction began in mid-2023, with around 60% of Phase-1 work completed by late 2024.
Tata Projects is executing the build, and the facility is expected to be handed over to Micron by December 2025, after which the company will share its operational and production timelines.
Despite the growing policy momentum, venture capital participation in India’s semiconductor ecosystem continues to remain cautious. In 2025, Indian semiconductor startups raised roughly $50 Mn, a 79% jump from $28 Mn raised by such startups in 2024.
While this reflects an upward trend in VC interest, funding levels remain modest compared to other deeptech or software segments.
Industry observers attribute this gap to multiple structural factors. Semiconductor manufacturing is capital-intensive and execution-heavy, making it better suited to large, established companies rather than venture-backed startups.
As a result, many of the government’s biggest incentives, including those under ISM and PLI, are flowing towards large electronics and semiconductor players, with startups benefiting only indirectly.
That said, investor interest is slowly shifting towards less capital-intensive segments of the semiconductor stack. Areas such as chip design, RISC-V-based architectures, AI accelerators, edge computing chips and specialised ASICs are increasingly seen as more aligned with venture economics.
Unlock special offers and join 10,000+ founders, investors & operators staying ahead in India’s startup economy.
Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the
hottest startup deals, supercharge your innovation projects, and stay updated with expert
curation.
Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn
to validate ideas, acquire customers, secure funding, and navigate the journey to startup
success.
Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence,
understand market landscapes, and decode emerging trends to make informed decisions.
Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful
investors, and keep track of upcoming funds, accelerators, and more.
Join a community of 10,000+ leaders & operators – unlock unlimited access to Inc42 stories,
videos, deals, member-only perks, and more.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Unlock unlimited access to 500+ monthly new stories and Inc42’s complete archive of
40,000+ stories.
Over $250,000 worth deals on software & tools to help your business scale up.
Network with industry leaders & operators with exclusive invites to Inc42’s
member-only virtual events
Enjoy an ad-free and clutter-free
experience as a member, focus on
what really matters to you
Your contribution will go on to
support and empower our unbiased
& data-driven journalism
Join 1000's of entrepreneurs, business leaders & makers and stay ahead with our sharp,
incisive & data-driven analysis on India’s tech and startup economy!
Unlock personalised stories, ad-lite reading, and exclusive newsletters on Inc42.
Tired Of Playing Catchup On Indian Tech?
Stay Ahead. Every Morning at 8
Get The Week’s Most Consequential Developments.
Inc42 In-Depth is your daily 9 PM newsletter with sharp insights from India’s startup economy.
Inc42 Moneyball is your Thursday newsletter on India’s venture capital trends. 4 PM sharp.
Inc42 Markets is your weekly newsletter on tech IPOs & startup stocks. Every Sunday
get access to a list of 200+ family offices betting big on startups
Get access to a list of Alma Mater Of India's Unicorn & Soonicorn Founders
Login or create a free account to continue reading in private mode.
AI Description
The article discusses Tata Electronics' new semiconductor plant in Dholera, which will support Indian startups in developing prototype chips domestically. This initiative is expected to bolster the local semiconductor industry.